Any amount by which the RMD due for the year is short.
Example: If the RMD for the year is $10,000, and only $8,000 was distributed from the retirement account, the excess accumulation is $2,000 ( $10,000-$8,000).
IRC § 4974, ; Treas. Reg. §54.4974-1
Additional Helpful Information
- An Excess accumulation penalty applies to excess accumulations. However, the penalty may be waived by the IRS if the participant is able to establish that the failure to withdraw the RMD by the deadline was due to reasonable cause.